(Logo via Nielsen)

AFRICAN AMERICAN SPENDING POWER DEMANDS THAT MARKETERS SHOW MORE LOVE AND SUPPORT FOR BLACK CULTURE

Originally Published by Nielsen.com

African Americans want more for themselves and from corporate America, and they express it with their dollars as they move through the consumer journey, from brand awareness to purchase, as revealed today in Nielsen’s 2019 Diverse Intelligence Series (DIS) Report on African Americans.

It’s in the Bag: Black Consumers’ Path to Purchase explores the non-linear and uniquely technologically driven road that African Americans follow to make purchasing decisions, which ultimately maximizes both online and in-person shopping options. This path highlights several differences in shopping behavior and purchasing when compared to the total U.S. population. The report also includes deeper insights into how culture, socio-economics and business influences how, why and what motivates African American spending in a special co-authored section by advocate and media commentator Angela Rye, CEO and Principal of Impact Strategies.

“At 47.8 million strong and a buying power that’s on par with many countries’ gross domestic products, African Americans continue to outpace spending nationally,” said Cheryl Grace, Nielsen’s Senior Vice President of Community Alliances and Consumer Engagement and co-creator of the DIS Report. “This year, we wanted to help brands and marketers understand the multi-faceted process that Blacks take to buy the products they buy. There are several drivers, but culture is at the center of them all. Further, with their love for technology, they are much more savvy and conscious consumers. They are as we say, ‘woke.’ They pay attention to how companies are speaking to them. As they spend more, they want more for themselves and from the brands they support.”

Dating back to 2011, this is Nielsen’s ninth report highlighting the media consumption, purchasing habits, lifestyle interests and economic advancements of African Americans. It is the third in a theme, released by Nielsen this year following the comprehensive purchasing processes of Asian American and Latinx consumers. Key takeaways from It’s in the Bag: Black Consumers Path to Purchase include:

African Americans are welcoming recipients of advertising across all channels. However, while the trends of the Black buying power and over-indexing in spending continue to increase, companies’ investments to advertise to them have decreased.

  • African Americans are more likely than the total population to agree that advertising provides meaningful information on most platforms, including mobile (42% higher), television (23% higher), radio (21% higher) and the internet (18% higher).
  • Advertising spend designed to reach Black consumers declined 5% between 2017 and 2018.

Physical appearance reflects a sense of cultural pride and self-expression in the Black community. This is evidenced by the top spending priorities for African Americans from everyday soap to luxury handbags.

  • African Americans outspend the total market on personal soap and bath needs by nearly 19% ($573.6 million).
  • Men are making an impact with grooming habits, outpacing the total market by 20% on toiletry items.
  • Blacks are 20% more likely than the total population to say they will “pay extra for a product that is consistent with the image I want to convey.”
  • They are also more likely to say they shop at high-end stores including Saks Fifth Avenue (63%), Neiman Marcus (45%) and Bloomingdales (24%).

While online shopping grows, African Americans continue to head to physical stores for the personal touch and feel experience—but with more discerning eyes.

  • More than half (52%) of African Americans find in-store shopping relaxing, compared with 26% of the total population.
  • 55% of Black consumers say they enjoy wandering the store looking for new, interesting products.
  • When shopping, African Americans are more influenced than the total population by store staff (34% more likely), in-store advertising (28% more likely) and merchandising (27% more likely).

The “for us by us” trend of Black-owned brands is profoundly impacting the African American path to purchase and consumer marketplace. Black consumers support brands that align with their lifestyles and values.

  • African Americans dominate the ethnic hair and beauty aids category, accounting for almost 90% of the overall spend.
  • 42% of Black adults expect brands they purchase to support social causes (16% higher than the total population).
  • 35% of African American shoppers are more likely to agree, “when a celebrity designs a product, I am more likely to buy it.”
  • Procter & Gamble (P&G) is the largest advertiser in African American media, spending more than a half-billion dollars ($544.3 million). Five of the top 20 baby care category products come from P&G’s Pampers and Luvs brands.

Soul food drives African American consumers’ top grocery purchases. These consumers are also passionate about the environment, wanting to buy safe, locally sourced food items.

  • African Americans outpace the general market on: Quaker grits ($19 million); Louisiana Fish Fry ($11 million); Glory Greens (frozen and fresh, $9.5 million combined) and Jay’s Potato Chips (nearly $2.7 million).
  • 61% say produce is the most important category to buy local, followed by bakery and prepared foods (56%), eggs (55%) and dairy (52%).
  • Blacks over-index the total population concerned about food safety issues: antibiotic use in animal production (by 20%); artificial ingredients (by 19%) and GMO crop development due to climate change.The biggest worry is rising prices due to trade tariffs (68% Blacks vs. 56% total population).

“Nielsen continues to unearth undeniable data and insights that highlight both the agency and power of Black consumers, and the plethora of opportunities that exist for companies that are focused on nurturing and empowering how they move through the world,” said Jonathan Jackson, former 2019 Nieman-Berkman Klein Fellow in Journalism Innovation at The Nieman Foundation for Journalism and member of Nielsen’s African American External Advisory Council.

Nielsen uses U.S. Census data to determine population estimates that inform its U.S. panels and its understanding of consumer behavior. Given the rapid diversification of the U.S. population, an accurate census has never been more important. That’s why Nielsen has signed on as a 2020 Census Official Partner with the U.S. Census Bureau, and utilized census data to show the economic and demographic impact of African American consumers.This is the second time the company has leveraged this partnership for the Diverse Intelligence Series, after the 2019 Latinx consumer report, released in August.

For more data and insights, download It’s In the Bag: Black Consumers Path to Purchase at Nielsen’s African American community site. Nielsen invites consumers to weigh in on the discussion using the hashtag #TruthBeTold on social media. Follow Nielsen on Facebook (Nielsen Community) and Twitter (@NielsenKnows).

Latest News

NYPD under suit

NYPD Sued for Years of Racial Abuse and Use of Excessive Force; Trump Administration Approves Discrimination Against LGBTQ individuals; and More

NYPD sued by Attorney General for years of racial abuse and use of excessive force. In what’s been called a “landmark lawsuit,” The New York Times has reported that New York state Attorney General Letitia James is suing the city of New York, the mayor and the NYPD’s leaders, alleging…

Tribal elder

Loss of Tribal Elders Due to COVID-19 Decimating Indigenous Populations; Colorado Revamps Common-Law Marriage Requirements, Making Them More Friendly for LGBTQ Couples; and More

Loss of tribal elders due to COVID-19 decimating Indigenous populations. The Muscogee, Navajo, Blackfeet Nation, White Mountain Apache and Choctaw tribes are among the many communities of Indigenous people suffering irreparable losses due to the COVID-19 pandemic, New York Times reporter Jack Healy has reported. Already impacted by infection rates…

Justice for George Floyd

Officer Who Pressed Knee Into George Floyd’s Neck to Stand Trial Alone; Judge Halts Federal Execution of Lisa Montgomery, Only Woman on Death Row

Officer who pressed knee into George Floyd’s neck to stand trial alone in March. Former Minneapolis police officer Derek Chauvin — the man who can be seen on video pressing his knee into George Floyd’s neck for an excruciating 8 minutes and 46 seconds — will now stand trial alone,…

BASF Starts Global Registration for New and Environmentally Friendly Insecticide Active Ingredient

Originally published on BASF.com. BASF ranked No. 14 on The 2020 DiversityInc Top 50 Companies for Diversity list. Regulatory dossiers for Axalion™insecticide submitted in Australia and Korea Active ingredient with novel mode of action and high compatibility with beneficial insects, including pollinators First sales for Axalion-based products expected by 2023…

Trump cancelled for insurrection attempt

Trump Isn’t Just Fired After Attempted Insurrection — He’s Cancelled; Fears Mount Over Multiple Potential D.C. Superspreader Events; and More

Trump isn’t just fired after attempted insurrection — he’s canceled. The legal and ego-shattering ramifications of inciting a riot and attempting to stage a coup on the Capitol Building continue to pile up for lame duck President Donald Trump. Consider that in less than a week following his criminal actions,…

KPMG: Race and Accountability in the Boardroom

Originally published on KPMG.us by Stephen L. Brown Senior Advisor, Board Leadership Center. KPMG ranked No. 12 on The 2020 DiversityInc Top 50 Companies for Diversity list. Protests and social unrest following the death of George Floyd and others, along with the detrimental effects of COVID-19 and the economic downturn…

Southern Company Becomes the First Large Cap Utility in the U.S. to Publish a Sustainable Financing Framework

Allows Southern Company and its subsidiaries to issue Sustainable Financing Instruments contributing to a sustainable economy Originally published on southerncompany.com. Southern Company has published a Sustainable Financing Framework (“Framework”), making it the first large cap utility holding company in the United States to do so. The Framework, published on January 4, 2021, allows…